Core Molding Technologies Inc (NYSE: CMT)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001026655
Market Cap 166.96 Mn
P/B 1.07
P/E 20.68
P/S 0.64
ROIC (Qtr) 4.65
Div Yield % 0.00
Rev 1y % (Qtr) -19.94
Total Debt (Qtr) 20.16 Mn
Debt/Equity (Qtr) 0.13

About

Core Molding Technologies, Inc. (CMT), a prominent player in the engineered materials industry, manufactures and sells molded products, generating revenue through engineered thermoplastic and thermoset structural items. These products cater to various markets, such as medium and heavy-duty trucks, power sports, building products, and other industrial sectors, offering advantages such as heat resistance, corrosion resistance, lighter weight, and lower cost. The company's headquarters rests in Columbus, Ohio, with six production facilities operating...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 19.16M provides robust 0.95x coverage of total debt 20.16M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 42.40M provide 22.10x coverage of short-term debt 1.92M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 198.61M provides 9.85x coverage of total debt 20.16M, indicating robust asset backing and low credit risk.
  • Retained earnings of 143.48M provide full 7.86x coverage of long-term debt 18.24M, indicating strong internal capital position.
  • Tangible assets of 198.61M provide robust 12.62x coverage of other current liabilities 15.74M, indicating strong asset backing.

Bear case

  • Operating cash flow of 19.16M barely covers its investment activities of (13.79M), with a coverage ratio of -1.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 5.37M provides weak coverage of capital expenditures of 13.79M, with a 0.39 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 12.02M show weak coverage of depreciation charges of 12.88M, with a 0.93 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 12.88M relative to operating cash flow of 19.16M, which is 0.67x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 5.37M represents just -2.83x of debt issuance (1.90M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 1.52
EV to Cash from Ops. EV/CFO 7.54 12.52
EV to Debt EV to Debt 7.16 13.65
EV to EBIT EV/EBIT 12.01 21.45
EV to EBITDA EV/EBITDA 5.92 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF 26.88 29.24
EV to Market Cap EV to Market Cap 0.86 3.84
EV to Revenue EV/Rev 0.55 89.11
Price to Book Value [P/B] P/B 1.07 5.48
Price to Earnings [P/E] P/E 20.68 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -75.74
Dividend per Basic Share Div per Share (Qtr) 0.00 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.50
Interest Coverage Int. cover (Qtr) -158.14 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -47.56 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.12 72.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -48.52 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -23.09 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -36.14 0.57
EBT Growth (1y) % EBT 1y % (Qtr) -35.48 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) -46.89 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) -81.80 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.07 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.19 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.41
Cash Ratio Cash Ratio (Qtr) 1.10 1.28
Current Ratio Curr Ratio (Qtr) 2.91 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 0.92
Interest Cover Ratio Int Coverage (Qtr) -158.14 -8.92
Times Interest Earned Times Interest Earned (Qtr) -158.14 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.50 -333.97
EBIT Margin % EBIT Margin % (Qtr) 4.59 -374.34
EBT Margin % EBT Margin % (Qtr) 4.62 -379.75
Gross Margin % Gross Margin % (Qtr) 17.60 29.26
Net Profit Margin % Net Margin % (Qtr) 3.10 -380.67